LONDON, March 17 (Reuters) - Britain's Labour government announced plans to freeze thousands of government-issued credit cards this week, totaling hundreds of millions of pounds in spending, in an effort to address excessive expenditures.
In light of dwindling growth forecasts and constrained by fiscal regulations, ministers are focused on trimming budgets comprehensively. Substantial welfare cuts are anticipated on Tuesday, preceding a fiscal update scheduled for March 26.
The decision to halt nearly all of the roughly 20,000 "Government Procurement Cards" is part of the government's drive to curb unnecessary spending, as outlined in a statement from the cabinet office late on Monday.
According to the cabinet office, expenditure on government credit cards has surged more than fourfold since the 2020-21 financial year, climbing to over 675 million pounds ($876.83 million) in 2024-2025 from about 155 million pounds.
Minister Pat McFadden of the cabinet office remarked, "It's unacceptable that hundreds of millions are spent annually on government credit cards without rigorous oversight or scrutiny." He emphasized, "Only essential personnel should be issued cards."
Only a select group of employees, like crisis-area diplomats, will retain their cards. Frozen cards will either be redistributed to individuals with justified needs or canceled before the month ends.
The goal is to slash the number of cards in circulation by at least 50%.
Efforts to cut government expenses are echoing in the United States as well. President Donald Trump is pushing for cost reductions, including significant layoffs, led by tech tycoon Elon Musk's Department of Government Efficiency (DOGE).
($1 = 0.7698 pounds)